- £300 million plan to import US shale gas to Grangemouth.
- TGE confirmed as preferred bidder for ethane tank build.
- Ethane tank to be completed by 2016.
- Old ethylene cracker and butadiene plant to close immediately.
Investment and Project Milestones
INEOS O&P UK has announced significant progress in its £300 million survival plan to import US shale gas to Grangemouth. The company has confirmed TGE as the preferred bidder for the ethane tank build contract. TGE is already constructing the ethane import terminal for INEOS in Norway, and both companies have signed a Heads of Terms for the project in Scotland. The ethane gas terminal is crucial for replacing the depleting North Sea feedstocks and ensuring Grangemouth's long-term competitiveness.
Project Timeline
The ethane tank, set to be the largest in Europe, is expected to be completed by 2016. This development is a key component of the survival plan, enabling Grangemouth to transition to a shale gas-based facility and return to profitability.
Plant Closures
As part of the survival plan, INEOS is closing its old ethylene cracker (G4) and the associated Butadiene (BE3) plant with immediate effect. These plants, dating back to the 1960s, are no longer commercially viable. The closures will allow the company to focus on increasing production from its more modern and efficient KG ethylene cracker.
Employee Redeployment
All employees affected by the plant closures will be redeployed to other roles across the Grangemouth site. This move aligns with the company's long-term strategy and ensures that the workforce remains engaged in the site's future development.
